Rwanda

In early 2025, Rwanda introduced comprehensive tax reforms spanning 2025 to 2030, including updates to VAT, Excise Duty, Income Tax, and the introduction of new levies. This has resulted in the following significant changes to Rwanda’s tax landscape: 

• Introduction of VAT on previously exempt items, including mobile phones, ICT equipment, fuel, fee-based financial services, and local transport of goods by road. 

• Digital Services Tax (DST) introduced at 1.5% on income earned by foreign digital platforms operating in Rwanda with significant national presence. 

• Capital Gains Tax (CGT) rate increased from 5% to 10%, with expanded scope to include more financial instruments including debt, options and licences. 

• Excise duty amendments include: 

• • Import of beauty products now subject to 15% excise duty. 

• • Cigarettes taxed at RWF 230 per pack plus 36% of retail price. 

• • Beer excise duty increased from 30% to 40% for local and 60% to 65% for foreign brands. 

• • Airtime excise duty to rise gradually from 10% to 15% by 2027. 

• • New 15% excise duty on amount charged on financial transaction by 1 July 2027. 
• Environmental levy of 0.2% CIF introduced on selected single-use plastic imports. 
• Introduction of a 3% tourism tax on accommodation services

• Strategic petroleum reserves levy has been increased from RWF 32.73 per litre to RWF 50 per litre on petrol and gas oil.

• Introduction of a 15% road maintenance levy on petrol and diesel the tax base being the CIF value of the imported fuel.
• Annual road use fee proposed at RWF 50,000 to RWF 150,000 per vehicle based on the vehicle type to support infrastructure funding. 
• Gaming tax reforms: 

• • Withholding tax on winnings increased from 15% to 25%. 

• • Gross Gambling Revenue tax for operators raised from 13% to 40%. 

• • Businesses undertaking gaming activities exempted from corporate income tax. 

• Hybrid vehicles remain exempt from import duty but now subject to VAT and tiered excise (5–15%) based on age. 

• Phase-out of VAT exemptions: 

• • Machinery, capital assets and raw materials used in industries to remain VAT exempt up to June 2026
  • Electric vehicles to become subject to VAT by July 2028. 

• • Energy supply equipment to remain VAT-free until July 2028. 

• Increase in the mandatory pension contribution from the 6% to 12% effective from January 2025. The rate will be increased to 14% effective from January 2027 and will progressively increase to 16%, 18%, and 20% annually between January 2028 and January 2030.